Smithway Motor Xpress and Swift Transportation reported their third quarter earnings last week.


Smithway Motor Xpress saw its operating revenue drop 3.3% during the third quarter, to $48.6 million from $50.2 million during the same quarter in 2000. It reported a net loss of $1.2 million, compared with net earnings of $21,000 during the 2000 quarter.
"During the quarter, Smithway continued to feel the effects of several challenges that face the trucking industry," said chief executive William G. Smith. "An economy in recession, a depressed market for used trucks, and rising insurance costs for nearly all carriers have contributed to a very difficult operating environment. In addition, although fuel prices have moderated somewhat, they remain above historical levels."
Smith said lower revenue per truck was the main factor that impacted Smithway's performance during the quarter. A combination of slow freight demand and the compay's decision to reduce exposure to the troubled steel and building materials industries reduced operating revenue. The company says it is seeking customers from other sectors to diversify its freight base.
To help keep costs down, Smithway has limited the addition of new equipment and lengthened its trade cycle for tractors. "Although lengthening the trade cycle has led to an increase in parts, tires, and maintenance expenses, we believe the reduction in capital expenditures and the ability to avoid the current market more than outweigh the costs," he said.
The company also has cut its non-driver workforce by about 4 percent, closed one terminal, and is in the process of eliminating approximately 300 trailers, mostly 48-foot dry vans and heavier, less efficient flatbed trailers obtained in acquisitions.

Swift Transportation's third quarter results reflect its June 29 acquisition of M.S. Carriers.
Revenues increased 7% to $536.4 million, compared with $501.3 million for the corresponding quarter of 2000. Net earnings, however, were $2.8 million, compared to $19.4 million in 2000.
The third quarter results include a $10.5 million noncash pretax adjustment for the recognition of the impairment of an investment, held by M.S. Carriers, in Transportes EASO, the largest intra-Mexico truckload carrier. In addition, the third quarter results included a $3.6 million noncash adjustment for the change in market value of interest rate derivative agreements of M.S. Carriers.
"Despite the issues related to EASO, we continue to be optimistic about the integration of M.S. Carriers," said Jerry Moyes, Chairman and CEO. "We are on track to complete the integration by January 1, 2002. At that point we will be able to take full advantage of the efficiencies of what will be the largest truckload fleet in the United States. We are excited about the opportunities that will be available when freight demand returns to normalized levels as the economy begins to improve."